A $200,000 donation made to former Labor prime minister Kevin Rudd's local branch on the eve of last year's federal election has been made in breach of Queensland's electoral laws.

The donation broke state laws because it was made by an overseas donor and should have been declared within a fortnight because it exceeded $100,000.

It was given to the ALP by a Taiwanese-born businessman and was used to fund work done by the party's pollsters, UMR Research.

The money was received by the Griffith FEC on September 3, four days before the federal poll, but a senior Queensland Labor spokesman says the state branch only became aware of the transaction on March 7.

The party's state administration committee yesterday voted to immediately demand UMR return the money so it can be refunded to the donor.

It has also decided to take action against two party members who signed the cheque to UMR for breaching party rules.

The Electoral Commission was informed yesterday after the party investigated the matter and sought legal advice.

Federal Labor frontbencher Chris Bowen says he does not know the details, but is confident the matter is in hand.